Fab confirmed to Del Ray that it signed a term sheet for the cash
and stock deal, but didn't disclose the name of the company or
the cost.

Del Ray's sources said that this purchase will likely lead to the
creation of a new shopping site that will sell the company's
custom furniture. According to a Fab spokesperson, home
furnishings are Fab's "most profitable business stream."

Although Valleywag just reported that the company was
burning as much as $9 million per month and would shut down by
the end of the year, a Fab spokesperson said that the burn rate
is only $1.6 million a month and it has enough cash to sustain it
for several years. As part of its new plan, Fab has cut staff in
the U.S. and will concentrate most of its workforce in India,
Eastern Europe and Germany.

Once seen as the golden child of the e-commerce world, and after
having raised more than $330 million in funding, Fab has had a
rough year, including declining site traffic, product pivots, departures from top executives, and lay-offs.
That has reduced its number of U.S. employees to a fraction of
what it once was. Re/Code's sources also say that there
might be still be more lay-offs to come.